Texas Administrative Code

Texas Administrative Code

TITLE 16	ECONOMIC REGULATION
PART 4	TEXAS DEPARTMENT OF LICENSING AND REGULATION
CHAPTER 77	SERVICE CONTRACT PROVIDERS AND ADMINISTRATORS
RULE §77.41	Financial Security--Reimbursement Insurance Policy

(a) A provider that uses a reimbursement insurance policy to comply with the financial security requirements of Texas Occupations Code §1304.151 and §1304.152, will not be allowed to obtain or renew a registration unless the insurer issuing the policy has provided all of the information and met all of the requirements set forth in Texas Occupations Code §1304.152(a-1).

(b) A reimbursement insurance policy that is used to comply with the financial security requirements of Texas Occupations Code §1304.151 and §1304.152 must include:

(1) the "Service Contract Provider Texas Endorsement" prescribed by the executive director; and

(2) copy of the approval letter from the Texas Department of Insurance for using the endorsement.

(c) A provider of a residential service contract may use a reimbursement insurance policy and maintain a funded reserve account as described in Texas Occupations Code §1304.157(c).

Source Note: The provisions of this §77.41 adopted to be effective November 16, 2009, 34 TexReg 7791; amended to be effective March 1, 2012, 37 TexReg 1319; amended to be effective June 15, 2022, 47 TexReg 3455; amended to be effective June 13, 2024, 49 TexReg 4035